Cambridge O Level: Business Studies 7115/21

Cambridge O Level
BUSINESS STUDIES 7115/21

Paper 2 Case Study May/June 2023
MARK SCHEME
Maximum Mark: 80
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the May/June 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.
This document consists of 21 printed pages.
© UCLES 2023 [Turn over

7115/21 Cambridge O Level – Mark Scheme May/June 2023
PUBLISHED
Generic Marking Principles
These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level descriptors
for a question. Each question paper and mark scheme will also comply with these marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
 the specific content of the mark scheme or the generic level descriptors for the question
 the specific skills defined in the mark scheme or in the generic level descriptors for the question
 the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
Marks must be awarded positively:
 marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
 marks are awarded when candidates clearly demonstrate what they know and can do
 marks are not deducted for errors
 marks are not deducted for omissions
 answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
© UCLES 2023 Page 2 of 21

PUBLISHED
Social Science-Specific Marking Principles

(for point-based marking)
1 Components using point-based marking:

 Point marking is often used to reward knowledge, understanding and application of skills.
We give credit where the candidate’s answer shows relevant knowledge, understanding
and application of skills in answering the question. We do not give credit where the answer
shows confusion.
From this it follows that we:
a DO credit answers which are worded differently from the mark scheme if they clearly
convey the same meaning (unless the mark scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they
are correct
c DO credit answers where candidates give more than one correct answer in one
prompt/numbered/scaffolded space where extended writing is required rather than list-type
answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required.
(Check for evidence it is understood and not used wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all
possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already
credited unless the language itself is being tested. This applies equally to ‘mirror
statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of
syllabus terms must allow for clear and unambiguous separation from other syllabus terms
with which they may be confused (e.g. Corrasion/Corrosion)
2 Presentation of mark scheme:

 Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
 Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
 Content in the answer column in brackets is for examiner information/context to clarify the
marking but is not required to earn the mark (except Accounting syllabuses where they
indicate negative numbers).
3 Calculation questions:
 The mark scheme will show the steps in the most likely correct method(s), the mark for
each step, the correct answer(s) and the mark for each answer
 If working/explanation is considered essential for full credit, this will be indicated in the
question paper and in the mark scheme. In all other instances, the correct answer to a
calculation should be given full credit, even if no supporting working is shown.
 Where the candidate uses a valid method which is not covered by the mark scheme,
award equivalent marks for reaching equivalent stages.
 Where an answer makes use of a candidate’s own incorrect figure from previous working,
the ‘own figure rule’ applies: full marks will be given if a correct and complete method is
used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

PUBLISHED
4 Annotation:
 For point marking, ticks can be used to indicate correct answers and crosses can be used
to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks
have no defined meaning for levels of response marking.
 For levels of response marking, the level awarded should be annotated on the script.
 Other annotations will be used by examiners as agreed during standardisation, and the
meaning will be understood by all examiners who marked that paper.

PUBLISHED
0450/7115/0086 Business Studies – Paper 2 Annotations
Annotation Description Use
Tick Tick Indicates a point which is relevant and rewardable (used in

part (a) questions).
Cross Cross Indicates a point which is inaccurate/irrelevant and not

rewardable.
BOD Benefit of doubt Used when the benefit of the doubt is given in order to
reward a response.
TV Too vague Used when parts of the answer are considered to be too
vague.
REP Repetition Indicates where content has been repeated.
NAQ Not answered Used when the answer or parts of the answer are not
question answering the question asked.
APP Application Indicates appropriate reference to the information in the

context.
OFR Own figure rule If a mistake is made in a calculation, and the incorrect
figure that results from the mistake is used for subsequent
calculations.
SEEN Noted but no credit Indicates that content has been recognised but not
given rewarded.
L1 Level 1 Used in part (b) questions to indicate where a response

includes limited knowledge and understanding.

has a more detailed discussion and contains some
evidence of justification.

includes a well-justified recommendation.

PUBLISHED
Question Answer Marks
1(a) Explain four barriers to communication for a business. 8
One mark for each barrier (max 4).
Award a maximum of one additional mark for each explanation of the barrier.
There are no application marks available.
Reasons could include:

 Problems with the sender – the language used is not clear/use of jargon
or technical terms so do not understand instructions
 The message is too long/too much detail is included in the message –
so the main meaning of the message may be lost in the detail
 Problems with the medium/method – the wrong medium is used such as
putting an urgent message on a noticeboard so may not be seen
immediately
 Computer failure/internet connection/technology fails – the message
may not be received
 No feedback is given – so the sender is unaware the message has not
been received
 Problems with the receiver – if a meeting is used and it goes on a long
time then the receiver may stop listening
 The channel/chain of command may be too long – too many people
through which the message is sent it may be distorted
 Language differences – hinder understanding of the message
For example: Problems with the sender (1) they may use language that
includes jargon or technical terms so do not understand instructions (1).

PUBLISHED
1(b) Consider the following two ways VP can purchase its inventory. Which 12
way should it use? Justify your answer.
 Head Office purchases the inventory for all the restaurants.

 Restaurant Managers purchase their own inventory from local
suppliers.
Level Description Marks
3 Sound application of knowledge and understanding 9–12

of relevant business concepts using appropriate
terminology.
Detailed discussion of both ways. Well-justified
recommendation.
Candidates discussing both ways in detail, in context
and with a well-justified recommendation including
why the alternative way is rejected should be
rewarded with the top marks in the band.

terminology.
Detailed discussion of at least one way.
Judgement with some justification/some evaluation of
choices made.
Candidates discussing at least one way in detail and
applying it to the case should be rewarded with the
top marks in the band.
1 Limited application of knowledge and understanding 1–4

of relevant business concepts.
Limited ability to discuss the ways with little/no
explanation.
Simple judgement with limited justification/limited
evaluation of choices made.
Candidates outlining both ways in context should be
0 No creditable response. 0

PUBLISHED
1(b) Relevant points might include:
 Able to make bulk purchases – discounts

received – lowering variable costs/lower unit
cost of food ingredients - possibly reducing
prices/increasing profit
 Easier to standardise the meals/control
Head office quantity and quality of ingredients in
purchases the different restaurants as all the inventory come
inventory for all the from the same food suppliers - maintains
restaurants reputation for good quality fast food
 Increased transport costs for food ingredients
to be taken to each fast-food restaurant
Warehouse storage is required for inventory
before it is sent out to each restaurant –
increases costs
 Managers can order different ingredients for

meals to meet local tastes – increases
demand/improved competitiveness – increases
revenue
 Local suppliers can deliver more frequently
and quickly – ensures ingredients will be
fresh – improves reputation of the
restaurants
 Managers may feel more motivated/trusted –
Restaurant
if allowed to make some decisions and order
Managers purchase
their own ingredients
their own inventory
 May be unable to meet sudden increase in
from local suppliers
demand for specific meals – if ingredients
are not available – may lose customers as
disappointed – lose reputation/customers do
not return
 Restaurant Managers are very busy - so
may not have the time to order ingredients
 Some ingredients may not be available locally
to each restaurant - limiting the availability of
the full menu in some restaurants

PUBLISHED
1(b)
Justification might include:
 All inventory is purchased by head office is
the best way for VP to choose as this will
allow considerable cost savings due to
purchasing economies of scale. This will
allow VP to keep prices low and to be more
competitive with other similar restaurants,
possibly increasing revenue. Ordering only
from local suppliers may make it difficult to
Recommendation meet customer demand as food ingredients
may run out if local suppliers are small.
 Each Restaurant Manager purchases their
own inventory is the best way to choose
because each restaurant can meet local
demand, and this will attract more customers
leading to higher revenue. Also the costs of
storage are lower as smaller quantities can
be purchased so profit from selling fast-food
will be higher.

PUBLISHED
2(a) Explain two advantages and two disadvantages of VP’s Restaurant 8

Managers delegating tasks to their Assistant Managers.
One mark for each advantage/disadvantage (max 2 advantages/max 2

disadvantages).
Award a maximum of one additional mark for each explanation of the

advantage/disadvantage in the context of VP.
Advantages could include:

 Restaurant Managers cannot carry out every job themselves/reduce
workload – they can then focus on the most important tasks at the fast-
food restaurant and make better decisions
 Restaurant Managers are less likely to make mistakes – as they can
focus on specific tasks such as marketing new menus
 Gives the Restaurant Managers time to assess employees performance
below them in the hierarchy – they can then identify where employees
need more support/training in developing/cooking new recipes
 May increase motivation/feel more trusted for Assistant Managers –
improved speed of serving fast-food
 Assistant Managers may develop new skills Disadvantages could
include:
 Restaurant Managers could lose some control over subordinates –
mistakes may be made leading to worse reputation if food is served
longer than 5 minutes after ordering
 Restaurant Managers may be reluctant to give up some control – if
Assistant Managers do a good job carrying out the delegated tasks such
as ordering new ingredients for the meals
 The Assistant Manager may not have the skills to carry out the tasks that
have been delegated to them/may need additional training – may lead to
poor decisions being made such as unskilled chefs being employed at
the restaurant
 Assistant Managers may not like having tasks delegated to them/feel
overloaded with work by Restaurant Managers
For example: Restaurant Managers can focus on their most important tasks
(1) which will help them to make better decisions for the fast-food
restaurants (app).
Application could include: fast food; restaurant; vegetarians; meals; public

limited company; food outlets across the country; diners; menus; recipes;
cooking; serving; ingredients; 50 employees; receive a meal in less than 5
minutes; service is the fastest possible.

PUBLISHED
2(b) Using Appendix 2 and other information, consider the two countries VP 12
could choose to locate its new restaurants.
Which country should VP choose? Justify your answer.

terminology.
Detailed discussion of both countries Well-justified
recommendation.
Candidates discussing both countries in detail, in
context and with well-justified recommendation
including why the alternative country is rejected
should be rewarded with the top marks in the band.

terminology.
Detailed discussion of at least one country.
Judgement with some justification / some evaluation
of choices made.
Candidates discussing at least one country in detail
and applying it to the case should be rewarded with
the top marks in the band.
1 Limited application of knowledge and understanding 1–4

of relevant business concepts.
Limited ability to discuss the countries with little/no
explanation.
Simple judgement with limited justification / limited
Candidates outlining both countries in context should
be rewarded with the top marks in the band.

PUBLISHED
Benefits Drawbacks
 Gross profit is $14,  There are many

and Country B is competitors so
$8 demand may be
 Highest price per lower – may have
meal at $20 – to reduce price to
possibly highest attract customers –
revenue if demand possibly reducing
remains high revenue
 Many competitors  May have to spend
may indicate that more on marketing
there is high as there are many
demand for fast- competitors in the
food restaurants market in order to
enter the new
market abroad –
Country A
increasing costs
 Higher wage costs
at twice the cost of
Country B – may
lead to higher costs
overall
 Harder to recruit
new workers as
unemployment is
low – may have to
offer more fringe
benefits to attract
employees from
their many
competitors

PUBLISHED
2(b)
 Lowest variable  Lower gross profit
cost per meal at between price of
$2 rather than $6 $10 and costs of
in country A – $2 = $8, whereas it
makes it easier to is $14 in country A
charge the lowest  Few competitors
price of $10 per may indicate that
meal demand for
 High vegetarian fast-
unemployment food in country B
makes it easier to is low – VP needs
recruit new to spend on market
employees for the research to be sure
restaurants – there is a market in
more likely to country B –
remain with VP as investment could
few alternative be wasted if there
Country B
employment is not a sufficient
opportunities in demand to make
country B – the expansion
lowering successful
recruitment
costs/training costs
in the future
 Lowest wage costs
at $5 per hour –
reducing total
labour costs
 Low price at $10
per meal may
attract many
customers –
possibly increasing
revenue
Justification may include:

 VP should choose country A as it can charge
the highest price of $20 per meal which may
lead to higher revenue and costs are likely to
be lower as variable costs are lower at $6
which gives a higher gross profit, so after
expenses have been paid, it may lead to
Recommendation higher profit. Country B should not be chosen
because it has a lower price per meal and
unemployment is high and there may be
lower demand.
 VP should choose country B as it has the
lowest wage costs, and it will be easy to
recruit new employees as there is high
unemployment there.

PUBLISHED
3(a) Explain two possible reasons why VP wants to expand. 8
One mark for each reason (max 2).
Award a maximum of three additional marks for each explanation of the

reason why VP wants to expand, one of which must be in context.
Answers might include:

 To gain higher profits for the owners – as expansion will lead to
increased sales in new markets abroad – leading to increased revenue
 To lower average/unit costs – gain from economies of scale – such as
bulk buying of food ingredients – a discount will be received from bulk
purchases
 To gain a larger share of the market – may produce a stronger brand
image – might result in greater customer loyalty
 To gain more status and prestige for the owners – from the company
being more well known in country Z – may be listed on stock exchanges
in other countries
 To gain access to new markets/diversification – this would
reduce/spread risk
For example: To gain higher profits for the owners (1) because expansion is
likely to increase revenue, (1) as VP will sell its products in more markets
(1). The higher profits should allow the shareholders of VP to be paid higher
dividends (app).
Application could include: fast food; restaurant; vegetarians; meals; food

outlets across the country; diners; shareholders/public limited company;
ingredients.

PUBLISHED
3(b) Consider the benefits and limitations of the following two ways VP can 12
enter a new market in another country. Which way should VP choose?
Justify your answer.
• Joint venture
• Franchising
3 Sound application of knowledge and understanding of 9–12

relevant business concepts using appropriate
terminology.
Detailed discussion of two ways. Well-justified
conclusion.
Candidates discussing both ways in detail, in context
and with well-justified conclusion including why the
alternative way is rejected should be rewarded with the
top marks in the band.
2 Sound application of knowledge and understanding of 5–8

relevant business concepts using appropriate
terminology.
Detailed discussion of at least one way.
Judgement with some justification / some evaluation of
choices made.
Candidates discussing one or more ways in detail and
applying it to the case should be rewarded with the top
marks in the band.
1 Limited application of knowledge and understanding of 1–4

relevant business concepts.
Limited ability to discuss the ways with little/no
explanation.
Candidates outlining both ways in context should be

PUBLISHED
Advantages Disadvantages
 VP will share the  It will take time and

risks and costs of effort to find the right
setting up the fast- partner to join with in
food chain in the venture – which
another country with may delay the
its partner in the expansion plans
joint venture – this  There may be
may help VP to management
borrow less capital conflicts between
to expand into the the two businesses
other country – leading to
 VP can gain arguments and
important local inefficiency – higher
knowledge about costs
the market – easier  Profits will have to
to focus meals on be shared – may
local tastes – reduce return on
increasing investment from the
demand/sales/reven expansion – may
ue not be agreeable to
Joint venture
 Less likely to the shareholders of
require expensive VP
market research to  The level of
understand the fast- expertise may not
food market – be the same in the
reducing the costs partner business –
of entering the new may make the
market abroad return on
 Lowering the risks investment unfair
of entering the new  The work and
market abroad - resources may not
more likely to be equally shared
understand local between the two
customs and tastes partners in the joint
– adapt fast-food venture – VP may
meals to meet local have to put more
demand work and resources
as it is the main
partner in the
venture

PUBLISHED
3(b)
 Saves time on  Poor quality
expanding into the management may
foreign market – as lead to a lowering of
business operating the reputation of the
fast-food VP brand – if the
restaurants will franchisee in the
make the foreign country
investment does not maintain
 Payment from standard of
franchise fees for delivering fast food
using the VP brand in 5 minutes
- fee goes back to  Low level of control
VP which may by VP Directors –
increase profits – over how the
making a return franchise operates
Franchising from the expansion the vegetarian
for low investment fast-food chain
from VP  The franchisee has
 Lower capital information about
requirement - no the food
need to raise ingredients and
finance for the recipes of VP and
expansion – no may use these
need to sell when the franchise
additional shares agreement has
with possible loss of expired – could
control/no bank loan develop a better
required so no need version and become
to pay interest rates a competitor
increasing fixed
costs

 Forming a joint venture is the best way to
overcome the problems of entering a new fast-
food market in another country which VP is
unfamiliar with as this will enable VP to
understand this new market by gaining
knowledge from this other business. The local
business will be able to advise and guide VP on
the best locations to choose and the best
meals to serve to meet local demand and
Conclusion
successfully enter this market. Franchising
should not be chosen as the franchisee may
provide poor service and lead to a poor brand
image of VP.
 Selling a franchise to businesses in the new
fast-food market in another country will reduce
the investment required for VP to expand. This
will make it cheaper and quicker to expand into
this new market while still receiving revenue
from the fees charged for the franchise.

PUBLISHED
4(a) Explain, using an example, one reason why VP might need: 8
 short-term finance
 long-term finance.
One mark for reason for short-term/long-term finance (max 1).
Award a maximum of three additional marks for the explanation of the

reason why VP needs short-term/long-term finance, one of which must be
in context, and one must include an example.
Answers for short-term finance might include:

 To provide working capital for the business – so that day-to-day
expenses can be paid for – an overdraft may be suitable as it is only
used if needed/potentially reducing interest paid
 To prevent cash-flow problem/improve the cash position of the
business – by taking short-term bank loan – this will provide finance for
a short time to overcome the potential shortage of cash and increase
liquidity
For example: To provide working capital for the business (1) so that
day-to-day expenses can be paid for (1). An overdraft may be suitable as it is
only used if needed which potentially reduces the interest to be paid
(1) when buying food ingredients for the restaurants (app).
Answers for long-term finance might include:

 To purchase long-term non-current assets – as these assets are likely to
be very expensive – so a long-term bank loan may be suitable as it is
repaid over a long period of time reducing the amount of monthly
repayments/outflows each month
 To expand the business – which requires a large amount of money in
order to grow – the issue of shares will not incur interest payments
 To update the business – often involves new technology which is
expensive – so payments may need to be spread over a long period of
time such as with a lease
For example: To expand the business (1) as VP is planning to expand in

another country (app) which requires a large amount of money to grow
(1). VP might choose to issue new shares which will not incur interest
payments (1).
Application could include: fast food; restaurant; vegetarians; meals; public

limited company/shareholders; food outlets across the country; diners; 500
restaurants; 25 000 employees; ingredients; expand into another country.

PUBLISHED
4(b) Using Appendix 3 and other information, consider how the following 12
three changes in country Z may affect VP. Which change is likely to
have the greatest effect on VP's profits? Justify your answer.
 Increase in interest rates.
 Depreciation of country Z’s exchange rate.
 New legal controls which require all restaurants to list the
ingredients in their meals.
3 Sound application of knowledge and 9–12

understanding of relevant business concepts
using appropriate terminology.
Detailed discussion of two or more changes. Well-
justified conclusion.
Candidates discussing all three changes in detail,
in context and with well-justified conclusion
including why the alternative changes are rejected
should be rewarded with the top marks in the
band.
2 Sound application of knowledge and 5–8

understanding of relevant business concepts
using appropriate terminology.
Detailed discussion of at least one change.
Judgement with some justification / some
Candidates discussing two or more changes in
detail and applying them to the case should be
1 Limited application of knowledge and 1–4

understanding of relevant business concepts.
Limited ability to discuss the changes with little/no
explanation.
Candidates outlining all three changes in context
should be rewarded with the top marks in the
band.

PUBLISHED
• Higher fixed costs from interest paid if bank loan

taken out for expansion of the restaurant chain
in another country – likely to lead to lower
profit
• Customers may buy fewer meals due to interest
rates being increased for 3% to 5% to be paid
on borrowing leaving less money to spend
leading to reduced revenue for VP
Increase in
• As VP is a public limited company it is large
interest rates
and may enjoy financial economies of scale –
leading to relatively lower interest rates charged
on bank loans than smaller businesses –
reducing the impact of the interest payable on
the loans
• Increased interest received on any reserves held
by VP – increase income into the business –
leading to an increase in profit
• Imported food ingredients will now cost more –

leading to higher variable costs – possibly lower
profit margin/higher prices
• Increased cost of imported ingredients may lead
to VP changing to purchase from local suppliers
Depreciation of
- however the quality may be lower
country Z
• When VP has expanded to another country
exchange rate
and set up new restaurants profits sent back to
country Z will exchange for a higher amount of
country Z currency – but capital needed for
expansion will exchange at a lower rate – higher
investment needed
• Increased costs of rewriting all menus – time

taken to work out and list all the ingredients in
meals – will need to be repeated every time a
Introduction of new meal is added to the menu – increases
new legal costs both in the short-run and possibly the long-
controls that run – reducing profit
require all • If VP wants to keep the same mark-up on costs
restaurants to – may lead to increased price of meals –– may
provide lead to lower demand/lower sales – reduced
information profit
about the • All restaurants will have the same costs – so
ingredients in competitiveness may not change
their meals • May attract different target market who didn’t
appreciate the ingredients used by VP – as
these are now listed on menus - may increase
sales

PUBLISHED
4(b)
• Increase in interest rates will have the greatest
effect on profit because VP will need to take out
large bank loans to finance the expansion in
another country leading to a large increase in
costs from the interest payable which will reduce
VP profits. Depreciation will have little effect as
ingredients are only a small proportion of costs
and only 30% of ingredients are imported. The
new legal controls will have little effect on profit
as these are a relatively small cost and the
menus are printed regularly anyway when the
Conclusion of
menus change with the new meals.
which is likely
• Depreciation of the exchange rate of country Z
to have the
will have the greatest effect on profit as 30% of
greatest effect
food ingredients are imported. This will lead to
on profits
a large increase in variable costs which will
reduce gross profit and then profit for VP.
• New legal controls that require all restaurants to
provide information about the ingredients in their
meals will have the greatest effect on profit as
menus will have to all be reprinted every time a
new meal is developed. As VP do this regularly to
encourage customers to return so they do not get
bored with the same meals it will result in a
regular increase in costs and therefore a
reduction in profit.

Cambridge O Level: Business Studies 7115/21

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BUSINESS STUDIES 7115/21

This document consists of 21 printed pages.

© UCLES 2023 [Turn over

Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

GENERIC MARKING PRINCIPLE 2:

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

GENERIC MARKING PRINCIPLE 4:

GENERIC MARKING PRINCIPLE 5:

GENERIC MARKING PRINCIPLE 6:

© UCLES 2023 Page 2 of 21

Social Science-Specific Marking Principles

1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

© UCLES 2023 Page 3 of 21

© UCLES 2023 Page 4 of 21

0450/7115/0086 Business Studies – Paper 2 Annotations

Annotation Description Use

Tick Tick Indicates a point which is relevant and rewardable (used in

Cross Cross Indicates a point which is inaccurate/irrelevant and not

REP Repetition Indicates where content has been repeated.

APP Application Indicates appropriate reference to the information in the

L1 Level 1 Used in part (b) questions to indicate where a response

L2 Level 2 Used in part (b) questions to indicate where a response

L3 Level 3 Used in part (b) questions to indicate where a response

© UCLES 2023 Page 5 of 21

Question Answer Marks

1(a) Explain four barriers to communication for a business. 8

One mark for each barrier (max 4).

There are no application marks available.

Reasons could include:

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Question Answer Marks

 Head Office purchases the inventory for all the restaurants.

Level Description Marks

3 Sound application of knowledge and understanding 9–12

2 Sound application of knowledge and understanding 5–8

1 Limited application of knowledge and understanding 1–4

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Question Answer Marks

1(b) Relevant points might include:

 Able to make bulk purchases – discounts

 Managers can order different ingredients for

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Question Answer Marks

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Question Answer Marks

2(a) Explain two advantages and two disadvantages of VP’s Restaurant 8

One mark for each advantage/disadvantage (max 2 advantages/max 2

Award a maximum of one additional mark for each explanation of the

Advantages could include:

Application could include: fast food; restaurant; vegetarians; meals; public

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Question Answer Marks

Level Description Marks

3 Sound application of knowledge and understanding 9–12

2 Sound application of knowledge and understanding 5–8

1 Limited application of knowledge and understanding 1–4

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